U.S. private equity firm MatlinPatterson Global Advisors confirmed Wednesday it plans to submit a bid to reorganize bankrupt Nortel Networks rather than allow it to sell its assets piecemeal at fire-sale prices, reports Reuters.
As one of Nortel's creditors, it's concerned about gaining maximum value for shareholders, and it said the proposed sale of Nortel's key wireless technology unit to Nokia Siemens fails to do that.
According to BusinessWeek, if Nortel's other units fetched similar prices to that offered for the wireless unit, the company that once was valued at more than $300 billion would bring as little as $2 billion. MatlinPatterson has until July 21 to submit its bid. Other bidders could emerge as well, which would bring about an auction for the company on July 24.